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Asian Meat Market Trends: a U.S

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Asian Meat Market Trends: a U.S Asian Meat Market Trends: a U.S. Perspective Joel Haggard Senior Vice President Asia Pacific Region [email protected] October 22, 2019 The Big Drivers - Aging populations – youth as principal demand drivers; also labour shortages - “Healthier” eating – encompasses nutrition attributes, but also sustainable, ‘natural’, ‘local’, growing animal welfare awareness - Cuisine experimentation – more menu choices, more competition for red meat - “New Retail” – purchasing anything, anywhere, anytime - Convenience – shorter meal prep times; meals on the go & alone Traditions persist - Penchant for fresh – wet markets still thrive, esp in Greater China region, and regardless of income; frozen & chilled discounted (outside of Japan & Korea) - Price sensitivity – esp for daily proteins, but also for e-commerce - Wet cooking over dry cooking – ovens still not ubiquitous, except microwaves - Fast food, but local flavours - Traditional meat products – mince market undeveloped Black Swans: ASF to reshape Asian meat consumption: “Its better to eat less pork” Korea’s Per Capita Meat Consumption Competitiveness is about cuts - short plate - chuck eye roll - clod hearts - knuckles - TBM - striploin - top butts - inside - short rib - heel muscle - ball Tips rounds b/less - bone-in short - trip-tips - outside - ribeye rib - chuck Tender rounds - tenderloin - culottes - flank - chuck roll - inside skirts - brisket - finger meat - outsides skirts - sirloin Flap - hanging - eye of round Tenders Chilled vs. frozen: Choice vs U.S. More Competitive U.S. Less Competitive Especially for pork - bls picnics; - bls butts - bone in middles - bellies - bone-in (Brazil); (EU); (EU) shoulders; - loin complex - spare ribs - bls hams; (Brazil); - hocks; - bone-in hams; - hearts - kidneys (Canada); - tongues; (EU) - ears; - front/hind feet; - stomachs; - neckbones; - carcasses Japan: A special case U.S. More Competitive U.S. Less Competitive Most U.S. volume is narrow range of cuts Buyers are knowledgeable Consumer interest in “the best” in beef, lamb, and pork; but faddish Most products move at lower prices (value stratification of PRC beef imports) 601,401 tons 5,342 tons Grain-fed Grain-fed Steak/roasts 494,947 tons 14,484 C & F Unit Import Values tons Non-marinated table meat >$4.50/lb. $3.18 - $4.50 Marinated Grass-fed table meat 96.6% $2.27 - $3.18 95% $1.36 - $2.27 Stewing meat Under $1.36 Minced meat etc.. Processing/ grinding/dumplings Typical fast moving meat items; Dah Chong Hong Food Mart: HK Marination + market access = numerous chef choices (wholesale prices per kg.) USDA PRIME ribeye: RMB 240-350 Australian long-fed F1 Wagyu-Angus cross ribeye: RMB 280 Australian grain-fed ribeye (trimmed): RMB 195 US CAB ribeye: RMB 180 Canadian AA ribeye: RMB 158 New Zealand ribeye (yearling; non-marinated): RMB 145 Canadian AAA striploin: RMB 125 Canadian AA striploin: RMB 115 US CAB chuck eye steak: RMB 100-110 Canadian BI short ribs: RMB 100 Australian grain-fed top blade: RMB 95 New Zealand striploin (yearling; non-marinated): RMB 95 USDA CHOICE tri tip: RMB 95 USDA CHOICE chuck roll: RMB 90 Australian grass fed cube roll (ribeye): RMB 82 Uruguay top blade steak, grass fed: RMB 80 Argentina grass fed ribeye: RMB 75 Australian grass fed striploin: RMB 75 NZ grass fed ribeye: RMB 75 Uruguay grass fed ribeye: Minced beef RMB 75 USDA CHOICE clod heart steak: market small RMB 75 Argentina grass fed striploin: RMB 65 Canadian grain fed chuck roll: RMB 65 New Zealand striploin: RMB 65 Brazilian cube roll (ribeye): RMB 62 Hot pot & BBQ driving regional demand for grain-fed beef Asian “Niku boom”; meat portions are getting bigger; more meat concept restarurants The way people are eating out is changing Retail: neighbourhood stores & wet markets thrive “we don’t sell yesterday’s meat” Online beef sales flourishing but from small base Beef merchandising still needs work, but improving Higher labour costs means more portion control & skin packs ….and convenience Can traditional wholesaling move online? (Korea: CJ Freshway’s Meat Friends) Questions? HK: world’s most competitive meat markets Uruguay, $39 Denmark, $35 Ukraine, $15 Hong Kong: total meat & poultry imports Belgium, $33 Chile, $13 Vietnam, $38 Turkey, $21 Hungary, $21 Others, $53 Jan - Dec 2018 (US$ in million) Japan, $69 Mexico, $46 France, $57 Russia, $36 Korea South, $10 Thailand, $76 Italy, $55 Ireland, $71 Malaysia, $13 New Zealand, $78 Paraguay, $11 Argentina, $124 Spain, $134 United Kingdom, $144 Netherlands, $145 Poland, $160 Brazil, $2,365 Canada, $162 Germany, $192 Australia, $233 Brazil United States China Australia Germany Canada Poland Netherlands United Kingdom Spain Argentina New Zealand China, $958 Thailand Ireland Japan France Italy Mexico Uruguay Vietnam Russia Denmark Belgium Hungary United States, $1,836 Turkey Ukraine Malaysia Chile Paraguay Korea South Others.
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